Qualification > Commerce

Economics P3 Questions/Doubts

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lastgift:
Isnt it a replica to what I explained Dasith?

Dasith:

--- Quote from: lastgift on November 02, 2011, 03:33:18 pm ---Isnt it a replica to what I explained Dasith?

--- End quote ---

yea replica with details :D

Azland:
The table shows the figures for consumption, capital formation and depreciation in four
economies, all measured in US $.
Assuming that the state of technology remains unchanged, which economy is most likely to
experience economic growth?
consumption ($ m) capital formation($ m) depreciation
($ m)
A 100 20 10
B 500 200 200
C 1000 1200 1400
D 20000 5000 6000

Anyone knows how to solve this question? . If so, please explain.

Dasith:
^ is da ans A) in the above post ?

its because all the other economies hav a way too higher depreciation than their capital formation , which means their capital in current year would depreciate causing them difficulties in producing the same amount of goods they produced this year , in the next year , which means they are unlikely to hav economic growth , but in A) the Depreciation < than Capital formation , which allows them to produce more goods next year....

Azland:
Yes, Answer is A. I got your point so the table listing consumption has no significance?

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